Shares in Magnetic Resources Ltd (ASX: MAU) have been performing well recently, but according to a report by Shaw & Partners, there’s still plenty of upside to be had.
Magnetic’s flagship asset is the Lady Julie gold project in Western Australia, where the company in January released an updated mineral resource of 39.1 million tonnes of ore containing 2.24 million ounces of gold.
More than 80% of the resource was also in the high-confidence “indicated category”.
Deposit continues to deliver
Managing Director George Sakalidis said at the time that the LJN4 deposit at the project “continues to deliver” and was an “exceptional ore body”.
He added:
LJN4 is one of the largest and highest grade undeveloped open pit deposits in Western Australia. With the feasibility study completion and the permitting process advancing, Magnetic is rapidly evolving to a position of being ‘shovel ready’ for development.
The company said that further infill and extension drilling were being carried out to extend the resource.
The company explained:
LJN4 represents an excellent development proposition and is now significantly larger than the resource considered in the LJGP Feasibility Study (released to the ASX on 23 July 2025), both in scale and detail, with the depth of information now available providing increased confidence in the viability of the proposed development and associated value available to be unlocked.
Plenty of share price upside
Shaw & Partners analysts have had a look at Magnetic’s plans, and it’s fair to say they like what they see.
They said in a note to clients:
Magnetic Resources is entering a critical phase for regulatory de-risking. Management expects to satisfy all Mines Department requirements within 2-3 months, leading to mining approval. With native title in place, the current focus is on finalising technical studies required by regulators, including hydrogeological work and geotechnical drilling for waste and tailings infrastructure.
They noted that Magnetic was also updating its economic studies to take into account a significantly higher gold price, with the feasibility study released in July using a gold price of $4000, while current spot gold prices were closer to $7000.
There were several catalysts for operational upside, as the Shaw team said:
The updated study will also incorporate an additional 280koz-350koz from underground that were excluded from prior iterations. MAU is shifting from an owner-operator model to contracting, which will reduce upfront capex materially. Metallurgical improvements are also being investigated, such as using gravity circuits instead of flotation, which could increase gold recoveries by 3%- 4% above the current 92% average.
Shaw has a target price of $4 per shares on the stock, compared with a share price of $1.61 currently.
If that price is achieved it would constitute a return of 148.4%.
The post This gold stock could deliver almost 150% upside, one broker says appeared first on The Motley Fool Australia.
Should you invest $1,000 in Magnetic Resources NL right now?
Before you buy Magnetic Resources NL shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Magnetic Resources NL wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.